Home sales will remain flat until Congress passes the economic stimulus bill that allows Fannie Mae and Freddie Mac to purchase jumbo mortgages, according to the National Association of Realtors. The Realtors are concerned that homebuyers in high-cost markets are sitting on the sidelines and waiting for Congress to increase the GSE loan limits to 125% of median home prices with a cap of $729,750. NAR also is concerned that operational problems could delay implementation and Fannie and Freddie will not be ready to stimulate sales during the spring home buying season. It would be "cleaner and faster" for the two government-sponsored enterprises to implement a $625,000 nationwide loan limit, NAR spokesman Walter Maloney said. Separately, GSE regulator James Lockhart told a Senate panel it will take Fannie and Freddie two months to set up the systems and models to purchase higher balance loans.
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The Senate passed a bipartisan housing package, which includes certain community bank provisions, in an 85-5 vote. The House is set to vote on the package Wednesday.
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Ralo uses artificial intelligence to automate the entire process, saving consumers money by cutting out commissioned loan officers, processors and underwriters.
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Part of the proposal affects the risk weighting for certain "investment properties and other cashflow-dependent" mortgages, according to a new Pennymac report.
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William Isaac led the Federal Deposit Insurance Corp. through the banking and thrift crises of the 1980s and was a frequent commentator on bank regulation after his time in public service.
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The longtime Federal Reserve chair served under four presidents and presided over the deregulatory and pro-market push of the 1990s and early 2000s that set the stage for the 2008 mortgage crisis.
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Life insurers have offloaded long-term policyholder liabilities into offshore reinsurance and captive subsidiaries, raising concerns over state oversight of opaque investment vehicles and whether insurers have adequately funded claims.
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